Monthly Report!
We get the question of why many people are renting versus buying, as well as what are all these new places renting for. Therefore, we did our own in-house study on the three-year-old and newer rental properties in the area, including apartments, townhomes, villas/cottages. Most rental developments we have talked with are filling up quickly. See below the average monthly rent price and estimates of monthly mortgage payments.
- Cottage/Villa/Townhome rental: 1-bed = $1,622.33, 2-bed = $1,880.50, 3-bedroom = $2,378.00
- Apartment: 1-bed = $1,380.78, 2-bed = $1,662.75, 3-bed = $1,930.00
- SF Home: $350,000 30-year loan with 20% down payment at 6.5% interest = $1,770 (Principal and Interest) + $550 (Property Tax and Insurance) = $2,320.00
- SF Home: $450,000 30-year loan with 20% down payment at 6.5% interest = $2,275 (Principal and Interest) + $625 (Property Tax and Insurance) = $2,900.00
The mortgage payments do not include maintenance, lawn care, HOA fees, or amenities. Compared to home ownership, rent prices are more affordable.
The Peppertree Apartments are a little lower in price because of their age. Also, older homes will have a lower price point – lower tax rate and most likely no association fees. The reason so many people are renting is affordability – no down payment, no long-term commitment, no large maintenance costs. Renting is a quick fix and less expensive in the short term. What they aren’t considering with home ownership is in 20 years the purchase payment will have just increased by the amount of taxes and insurance, but they will have built up equity.
Land, Commercial, and Industrial have not cooled off. A lot of that has to do with availability. Access to water and sewer affects property value, due to the City of Wildwood being close to full capacity on their wastewater system. If you don’t have water and sewer entitled to your property, the value decreases. Whereas if you have water and sewer, the value increases.
We will be CLOSED on Monday, September 2nd in observance of Labor Day.
We appreciate your business. We value your real estate needs and are honored to serve you.
Sincerely,
Smith & Smith Realty
